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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Stock Farmer who wrote (46135)9/3/2001 3:42:29 PM
From: Uncle Frank  Read Replies (1) of 54805
 
>> One must believe that a stock is "undervalued" against alternatives to purchase it with expectation of gain.

Of course, but holding period is a variable you shouldn't disregard in drawing any conclusions.

>> Wasn't there still an expectation of long term gain in excess of alternative investments?

Not universally. Some had short term gain in mind.

>> Because if they had been behaving rationally they would have sold the stocks when overvalued and repurchased them later at fair value or less.

You are making the assumption that it is possible to make such a determination in real time. How about offering some links to posts you made in 1Q00 that establishes you were capable of doing so.

And if you were, why didn't you take the rational approach and short the Gorillas?

uf
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